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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-K





ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT
OF 1934

Commission File No. 0-8488

For the fiscal year ended December 31, 2008





TWENTY SERVICES, INC.

(Exact name of registrant as specified in its charter)







|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|ALABAMA                                                        |  | 63-0372577                       
|(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification No.)
|                                                               | 
|20 Cropwell Drive - Suite 100 Pell City, Alabama               |  | 35128                            
|(Address of principal executive offices)                       |  | (Zip Code)                       

Registrants telephone number, including area code (205) 884-7932

Securities registered pursuant to Section 12(g) of the Act:



|                     |  |                                
|-------------------- |  | -------------------------------
|Title of each class: |  | COMMON STOCK                   
|                     |  | 7% Cumulative Preferred Stock *





Indicate by check mark whether the Registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve (12) months (or for such shorter period that the Registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past ninety (90) days.    YES  x    NO   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                 |  |                           |  |  
|----------------------- |  | ----------------------------------------------- |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                               |  | Accelerated filer         |  |  ̈
|                        |  |                                                 | 
|Non-accelerated filer   |  |  ̈ (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act:    YES   ̈    NO  x

As of December 31, 2008, the Registrant had issued and outstanding 1,283,068 shares of common stock, par value of $0.10 per share, and as of December 31, 2008, the aggregate market value of the voting stock of the Registrant held
by non-affiliates of the Registrant, based upon the book value of such shares as of such date, was approximately $2,600,000.

Documents incorporated by
reference: NONE



|* | Includes 7% Cumulative Series A-1980 Preferred Stock, 7% Cumulative Series A-1981 Preferred Stock, 7% Cumulative Series A-1982 Preferred Stock, and 7% Cumulative Series A-1985
Preferred Stock.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------









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|1. | BUSINESS.
|-- | ---------

(a) General Development of
Business. Since its inception in 1955, Twenty Services, Inc. (hereinafter sometimes referred to as the Registrant or Company), has been engaged principally in the general finance business, including the purchase and sale
of real estate. In October 1980, the stockholders of the Registrant authorized the Board of Directors to redeploy the Registrants assets and reinvest the proceeds derived from such redeployment in a business other than the general finance
business. During 1982 and 1983, the Company and an affiliate of Twenty Services Holding, Inc. (Holding), the owner of approximately 56% of the Registrants outstanding common stock, acquired an interest in the common stock of The
Statesman Group, Inc., an insurance holding company based in Des Moines, Iowa (Statesman). The investment in Statesman was sold in 1994. The Registrant invested the proceeds in equities and fixed income securities that offer attractive
returns commensurate with the risk assumed. In 1995, the Company acquired an interest in the common stock of American Equity Investment Life Holding Company, an insurance holding company based in Des Moines, Iowa (American Equity). As of
the date of this Annual Report on Form 10-K the Registrant owns 237,000 shares of common stock of American Equity Investment Life Holding Company.

Depending upon the financial condition of the Registrant, the opportunities available to the Registrant and other matters, the Registrant may acquire majority interests in, and thereafter direct the operations of,
other corporations or business entities engaged in one or more active businesses. The Registrant will continue to engage in certain aspects of the general finance business, including extending credit to certain persons and collecting its loan
receivables. As of the date of this annual report on Form 10-K, the Registrant does not believe that the composition of its investments and the nature of its business activities render it subject to the Investment Act of 1940, and the Board of
Directors of the Registrant intend that any future acquisitions by and/or business activities of the Registrant will be structured in a manner so that the Registrant will not become subject to the Investment Company Act of 1940.

(b) Financial Information Regarding Industry Segments.

The Registrant is not required to supply information respecting industry segments. However, for certain information respecting the general
finance and other business activities of the Registrant, see the Financial Statements of Twenty Services, Inc., including the notes thereto, which are included elsewhere herein.

(c) Narrative Description of Business.

General Finance Business. As stated above, the Registrant historically has engaged in the general finance business which has consisted of (i) extending credit to finance various real estate projects, including
the purchase of single-family dwellings and commercial real estate, and to finance home improvements (the Real Estate Loans), and (ii) extending credit for business and miscellaneous purposes (the Business and Miscellaneous
Loans).

Loan Portfolio. The following tabulation sets forth the outstanding balances of the Registrants loan portfolio
as of December 31 of each year indicated below (including, if appropriate, unearned interest), classified according to the types of loans comprising the Registrants loan portfolio:



|                           |  |      |        |      |   |        |  |      |        |  |   |       
|-------------------------- |  | ---- | ------ | ---- | - | ------ |  | ---- | ------ |  | - | ------
|Type of Loans              |  | 2008 |        | 2007 |   | 2006   |  | 2005
|Real Estate                |  | $    |       |      | $ |       |  | $    |       |  | $ |      
|Business and Miscellaneous |  | $    | 26,882 |      | $ | 30,034 |  |      | 28,212 |  |   | 11,628
|                           |  |      |        |      |   |        |  |      |        |  |   |       
|Total:                     |  | $    | 26,882 |      | $ | 30,034 |  | $    | 28,212 |  | $ | 11,628
|                           |  |      |        |      |   |        |  |      |        |  |   |       

Of the Registrants aggregate loan portfolio as of December 31, 2008 100% was secured.

Interest Income. The following tabulation sets forth certain information respecting the Registrants net interest income for each of the
years indicated:



|                    |  |      |        |      |   |        |  |   |       
|------------------- |  | ---- | ------ | ---- | - | ------ |  | - | ------
|                    |  | 2008 |        | 2007 |   | 2006  
|Interest Income     |  | $    | 78,187 |      | $ | 90,811 |  | $ | 99,333
|Net Interest Income |  | $    | 78,187 |      | $ | 90,811 |  | $ | 99,333

The Registrant utilizes the interest (actuarial) method in recognizing income attributable to
interest charges. Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 90 days or more and resumed when the loan becomes contractually current.



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Other Business Activities. As described above, the Registrants stockholders have authorized
the Registrant to redeploy the Registrants assets by conversion of such assets into cash and the reinvestment of the proceeds thereof in other business entities. The Registrant intends to invest in equities and fixed income securities that
offer attractive returns commensurate with the risk assumed. In December 1996, the Company acquired a 19.75% interest in a newly formed insurance holding company, American Equity Investment Life Holding Company. The Chairman of the Des Moines, Iowa
based company is also the Chairman of the Board of the Registrant. American Equity acquired a block of individual and group insurance policies in 1995 and 1996. In 1996, 1997, 1998 and 1999 American Equity obtained additional equity financing from
other investors which reduced the Companys interest therein to 1.64%.

Competition. With respect to the general finance
business, the Registrant is in direct competition with banks and other finance companies located within and without the State of Alabama. Many of these firms are substantially larger than the Registrant, have more capital available for lending
activities, pursue more actively new loan activity and enjoy a distinct competitive advantage over the Registrant.

In 2003 American Equity
made an initial public offering which decreased the Companys interest therein to less than one percent. However, the offering had the effect of increasing the value of the Companys investment by approximately $750,000.

Employees. During 2008 and 2007 the Registrant employed two (2) persons to fill two (2) positions; one (l) of such positions was an
executive position, and one (l) of such positions was a clerical/administrative position.

At February 2009, the Registrant employed
two (2) persons to fill two (2) positions; one (l) of such positions was an executive position and one (l) of such positions was a clerical/administrative position.

The Registrant considers its relationship with its employees to be good.

Certain Government Regulations. The Registrant is subject to federal and state regulations relating to consumer credit financing and is subject to periodic examinations by officials of the State of Alabama
charged with the responsibility of enforcing such regulations. The last examination of the Registrant by officials of the State of Alabama occurred on August 29, 2008. As a result of such examination, the Registrant was found to be in
compliance with the regulations described above, and the Board of Directors of the Registrant believes that the Registrant presently is in compliance with such regulations. No material monetary claim has been made by any borrower against the
Registrant respecting failure to comply with such regulations.

The Registrant is not subject in any material way to regulations relating
to the discharge of materials into the environment.

Other Matters. The Registrants business is not seasonal.

No material portion of the contracts or subcontracts of the Registrant is subject to renegotiation by the United States Government.

The business of the Registrant is not dependent upon any raw materials, and as of the date of this annual report on Form 10-K, the Registrant does not
own any material patent, trademark, license, franchise or concession. During the last two (2) years, the Registrant has not spent any money on research and development activities.

Due to the nature of its business, the Registrant does not have backlogs of orders believed to be firm. In addition, except as described in
Managements Discussion and Analysis of Financial Condition and Results of Operations, the Registrant does not follow any specified practice with respect to working capital.

The Registrant is not dependent upon a single customer or related customers or a very few customers, the loss of any one (l) or more of which would
have a materially adverse effect upon its business.

Financial Information Regarding Foreign and Domestic Operations and Export Sales.

All of the Registrants business activities have been conducted within the southeastern portion of the United States.



|2. | PROPERTIES.
|-- | -----------

The Registrant maintains its
principal executive office in an office facility located in Pell City, Alabama for which it pays aggregate annual rentals of $7,200. The Registrant believes its office facilities are adequate for its present needs.

The Registrant maintains its accounting records on a personal computer which is in compliance with the Y2K.



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|3. | LEGAL PROCEEDINGS.
|-- | ------------------

As of the date of this annual
report on Form 10-K, the Registrant is not a party of any legal proceedings.



|4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|-- | ----------------------------------------------------

During the period ended December 31, 2008 no matter was submitted to a vote of the security holders of the Registrant.

PART
II



|5. | MARKET FOR THE REGISTRANTS COMMON STOCK AND RELATED SECURITY HOLDER MATTERS.
|-- | -----------------------------------------------------------------------------

(a) Market Information. No broker or dealer makes an active market in the shares of Common Stock or the Series A-Preferred Stock of the Registrant.
Thus, there is no established trading market for the Common Stock or the Series A-Preferred Stock of the Registrant.

(b) Holder of
Records. As of December 31, 2008 there were 1,628 holders of record of the outstanding Common Stock of the Registrant, and 958 holders of record of the outstanding Series A-Preferred Stock of the Registrant.

(c) Dividends. During the past two (2) years, no dividends have been paid respecting the shares of Common Stock of the Registrant. Under
Alabama law, cash dividends may be paid only out of earned surplus (or retained earnings) of the Registrant.

As of December 31, 2008,
the Registrant has issued and outstanding 505,110 shares of Series A-Preferred Stock, consisting of four (4) series of such Preferred Stock issued in 1980, 1981, 1982 and 1985. The holders of the Series A-Preferred Stock are entitled to
cumulative dividends at the rate of $.07 per share per annum before any dividend may be declared or paid respecting the shares of Common Stock of the Registrant. During 2008 and 2007, the Registrant paid a dividend of $.07 per share respecting the
outstanding Series A-Preferred Stock.

The Registrant intends, to the extent that future earnings and its capital surplus permit, to pay
dividends respecting the shares of Series A-Preferred Stock. The Registrant believes it is unlikely that dividends will be paid in the future respecting the shares of Common Stock of the Company, although such payment will depend upon the future
earnings and business prospects of the Registrant.

SELECTED FINANCIAL DATA

The following tabulation sets forth certain financial information respecting the Registrant.



|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|--------------------------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | --------- | - |  | - | --------- | -
|                                        |  | 2008 |           |   | 2007 |   |           | 2006 |  |   | 2005      |   |  | 2004 |          
|Revenues                                |  | $    | 145,549   |   |      | $ | 138,285   |      |  | $ | 146,328   |   |  | $    | 144,610   |   |  | $ | 142,812   |  
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Net Income (Loss)                       |  | $    | (58,595   | ) |      | $ | 9,435     |      |  | $ | (246      | ) |  | $    | (11,913   | ) |  | $ | 5,921     |  
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Earnings (Loss) per Common Share:       |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Net Income (Loss)                       |  | $    | (.07      | ) |      | $ | (.01      | )    |  | $ | (.05      | ) |  | $    | (.05      | ) |  | $ | (.02      | )
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total Assets                            |  | $    | 3,265,101 |   |      | $ | 3,853,546 |      |  | $ | 5,086,593 |   |  | $    | 5,145,847 |   |  | $ | 4,684,581 |  
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Dividends Declared:                     |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Common Stock                            |  | $    | 0         |   |      | $ | 0         |      |  | $ | 0         |   |  | $    | 0         |   |  | $ | 0         |  
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Preferred Stock                         |  | $    | 35,357    | 1 |      | $ | 35,357    | 2    |  | $ | 35,357    | 3 |  | $    | 35,357    | 4 |  | $ | 35,357    | 5
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total                                   |  | $    | 35,357    |   |      | $ | 35,357    |      |  | $ | 35,357    |   |  | $    | 35,357    |   |  | $ | 35,357    |  
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  
|Book Value Per Common Share Outstanding |  | $    | 2.52      |   |      | $ | 2.66      |      |  | $ | 2.67      |   |  | $    | 2.90      |   |  | $ | 2.51      |  
|                                        |  |      |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           |  



|1 | Reflects dividend respecting Preferred Stock declared on February 27, 2009.
|- | ---------------------------------------------------------------------------

|2 | Reflects dividend respecting Preferred Stock declared on February 28, 2008.
|- | ---------------------------------------------------------------------------

|3 | Reflects dividend respecting Preferred Stock declared on February 28, 2007.
|- | ---------------------------------------------------------------------------

|4 | Reflects dividend respecting Preferred Stock declared on February 28, 2006.
|- | ---------------------------------------------------------------------------

|5 | Reflects dividend respecting Preferred Stock declared on February 28, 2005
|- | --------------------------------------------------------------------------



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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Liquidity and Capital Resources. During 2008 the Registrants liquidity remained virtually unchanged. The Company has no notes
payable nor long term debt and does not anticipate the need for borrowing in the near future. The Registrant has sufficient cash and temporary cash investments to meet its short term liquidity needs. Should long term liquidity needs exceed cash and
temporary cash investments, then the Registrant would dispose of marketable securities as it deems appropriate. Current trends and known demands and commitments do not create a need for liquidity in excess of the Companys current abilities to
generate liquidity.

The Company anticipates that its operating activities and investing activities will continue to generate positive net
cash flows and that its financing activities will continue to use cash flows.

Results of Operations. The Registrant reported a net
loss of $58,595 in 2008 as compared to a net income of $9,435 in 2007. The change was due primarily to income tax benefit in 2007. General and administrative expenses increased from $143,691 in 2007 to $148,349 in 2008.

Impact of Inflation. Inflation has an impact upon the Registrants financial position. Inflationary pressures generally increase the cost of
borrowed funds to the Registrant, rendering it less economic for the Registrant to borrow money for re-lending purposes.



|8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
|-- | --------------------------------------------

The
financial statements of the Registrant are set forth at page F-3 through F-15 hereof and are incorporated herein by reference.



|9. | DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|-- | -----------------------------------------------------

There has been no disagreement between the Registrant and its independent certified public accountants respecting any matter of disclosure, during the past twenty-four (24) months.



|Item 9A. | Controls and Procedures
|-------- | -----------------------

Disclosure Controls and Procedures

Under the supervision, and with the participation of our management, including Twentys Chief Executive Officer and Chief Financial
Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Subsequent to the filing on March 31, 2008 of the 2007 10-K,
we identified that we had inadvertently omitted from the 2007 10-K managements report on the Companys internal control over financial reporting. This omission was remedied by the filing on August 25, 2008 of amendment No. 1 to
the 2007 10-K. Twentys Chief Executive Officer and Chief Financial Officer have reconsidered the effectiveness of the Companys disclosure controls and procedures as of December 31, 2007 (the end of its 2007 fiscal year) in light of
its inadvertent omission of managements report from the 2007 10-K. Solely as a result of this inadvertent omission of managements report on internal control over financial reporting from the 2007 10-K, Twentys Chief Executive
Officer and Chief Financial Officer have concluded that the Companys disclosure controls and procedures as of December 31, 2007 were not effective at the reasonable assurance level. In accordancew ith Rule 13a-15(b) of the Securities
Exchange Act of 1934 (the Exchange Act), as of the end of the period covered by this Annual Report on Form 10-K, the Companys management evaluated, with the participation of the Companys Chief Executive Officer and Chief
Financial Officer, the effectiveness of the design and operation of the Companys disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on their evaluation of these disclosure controls and procedures,
the Companys Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be
disclosed by the Company in the report the Company files or submits under the Exchange Act.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. With the participation
of Twentys Chief Executive Officer and Chief Financial Officer, management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2008 based on the Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal controls over financial reporting was effective as of December 31, 2008. There were no
changes in our internal controls over financial reporting during the year ended December 31, 2008 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

This annual report does not include an attestation report of the Companys independent registered public accounting firm regarding internal control
over financial reporting. Managements report was not subject to attestation by the Companys registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only
managements report in this annual report.



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|10. | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
|--- | ------------------------------------------

SFAS
No. 157 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or
liability.

As a basis for considering market participant assumptions in fair value measurements, SFAS No. 157 establishes a fair
value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting
entitys own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level
1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level I that are observable for the asset or
liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest
rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entitys own assumptions, as there is little,
if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value
measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Twentys assessment of the significance of a particular input to the fair value measurement in its entirety requires
judgment, and considers factors specific to the asset or liability.

In September 2006, the FASB issued SFAS No. 157, Fair Value
Measurement. As discussed above, SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is
effective for the Companys financial assets and liabilities on January 1, 2008. In February 2008, the FASB reached a conclusion to defer the implementation of the SFAS No. 157 provisions relating to non-financial assets and
liabilities until January 1, 2009. The FASB also reached a conclusion to amend SFAS No. 157 to exclude SFAS No. 13 Accounting for Leases and its related interpretive accounting pronouncements. SFAS No. 157 is not expected
to materially affect how the Company determines fair value. We have adopted SFAS No. 157 effective January 1, 2008 for financial assets and financial liabilities and do not expect this adoption to have a material effect on our consolidated
results of operations or financial position but will enhance the level of disclosure for assets and liabilities recorded at fair value.



|                              |  |            |           |                                                             |   |                                            |  |                                        |  |  
|----------------------------- |  | ---------- | --------- | ----------------------------------------------------------- | - | ------------------------------------------ |  | -------------------------------------- |  | -
|                              |  |            |           | Fair Value Measurements at Reporting Date Using            
|Description                   |  | 12/31/2008 |           | Quoted Prices in ActiveMarkets for IdenticalAssets(Level 1) |   | Significant OtherObservableInputs(Level 2) |  | SignificantUnobservableInputs(Level 3)
|Trading securities            |  |            |           |                                                             |   |                                            |  |                                       |  | 
|                              |  |            |           |                                                            
|Available-for-sale securities |  | $          | 3,099,666 |                                                             | $ | 3,099,666                                  |  |                                       |  | 
|                              |  |            |           |                                                            
|Derivatives                   |  |            |           |                                                             |   |                                            |  |                                       |  | 
|                              |  |            |           |                                                            
|Venture capital investments   |  |            |           |                                                             |   |                                            |  |                                       |  | 
|                              |  |            |           |                                                             |   |                                            |  |                                        |  |  
|Total                         |  | $          | 3,099,666 |                                                             | $ | 3,099,666                                  |  |                                        |  |  
|                              |  |            |           |                                                             |   |                                            |  |                                        |  |  



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|11. | FINANCIAL DISCLOSURE AND INTERNAL CONTROLS
|--- | ------------------------------------------

Twenty
Services, Inc. maintains internal controls over financial reporting, which generally include those controls relating to the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S.
As a small public company Twenty Services, Inc. is subject to the internal control reporting and attestation requirements under Section 13(a)-15 and 15(d)-15 of The Securities Exchange Act of 1934.

Twenty Services, Inc. has established processes to ensure appropriate disclosure controls and procedures are maintained. These controls and procedures as
defined by the SEC are generally designed to ensure that financial information required to be disclosed in reports filed with the SEC is reported within the time periods specified in the SECs rules and regulations, and that such information is
communicated to management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as appropriate, to allow timely decisions regarding required disclosure.

Twenty Services, Inc.s senior management is involved in the day-to-day operations of the Company. Managements interaction and monitoring
activities evaluate recent internal and external events to determine whether all appropriate disclosures have been made in reports filed with the SEC. The Forms 10-K and 10-Q are presented to the Board of Directors for approval. Financial results
and other financial information are also reviewed with the Audit Committee annually.

As required by applicable regulatory pronouncements,
the CEO and CFO review and make various certifications regarding the accuracy of Twenty Services periodic public reports filed with the SEC, as well as the effectiveness of disclosure controls and procedures and internal controls over
financial reporting.

Twenty Services, Inc.s stock is not listed or traded and, therefore, not required to comply with corporate
governance listing standards.



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Part III



|12. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
|--- | ---------------------------------------------------

(a)-(e) - Identification of Directors and Executive Officers and Other Matters. The following tabulation sets forth certain information respecting the persons who are serving as the directors and executive officers of the Registrant as of
February 14, 2009.



|                                           |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------------------------------------------ |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Names and Positions with the Registrant    |  | Age |  | Material Occupations And Positions During The last five (5) years                                                                                                                                                                                                                                                                                                                                                                          
|David J. Noble Chairman of the Board       |  | 76  |  | Chairman of the Board of Directors, Twenty Services, Inc. Pell City, Alabama (finance business), since 1979. Chairman of the Board of Directors, Treasurer and Director, Twenty Services Holding,
Inc. Pell City, Alabama (holding company) since 1979; Chairman of the Board of Directors of American Equity Investment Life Holding Company Des Moines, Iowa since 1995.                                                                 
|                                           |  |    
|Dr. A. J. Strickland, III Vice-Chairman
of |  | 67  |  | Director and Vice-Chairman of the Board of Directors of Twenty Services, Inc., Pell City, Alabama (general finance business), since 1977; Director, Twenty Services Holding, Inc., Pell City,
Alabama (holding company), since 1979; Professor of Strategic Management -School of Commerce, University of Alabama, Tuscaloosa, Alabama since 1980; Director, American Equity Investment Life Holding Company, Des Moines, Iowa, since
1995.
|                                           |  |    
|Jack C. Bridges                            |  | 81  |  | Executive Vice-President, Twenty Services, Inc. Pell City, Alabama since April 1997.                                                                                                                                                                                                                                                                                                                                                       

There is no family relationship between any of the persons named above. Directors of the
Registrant are elected at each annual meeting of the stockholders of the Registrant and serve until their successors have been elected and qualified. Executive officers of the Registrant are elected at a meeting of the Board of Directors immediately
following each annual meeting of the stockholders of the Registrant. Mr. Noble was elected director of the Registrant in November 1979 pursuant to a resolution adopted by the Board of Directors of the Registrant stating that if Twenty Services
Holding, Inc. acquired approximately 20% of the outstanding Common Stock of the Registrant, the Registrant would make available to nominees of Twenty Services, Inc. Holding, Inc. two (2) places on the Registrants Board of Directors.

(F) Involvement in Certain Legal Proceedings.

During the past ten (10) years, no officer or director of the Registrant has been involved in any event of the type described in Item 3(f) of the Regulations S-K of the Securities Exchange Act of 1934.



|13. | EXECUTIVE COMPENSATION
|--- | ----------------------

Current
Remuneration. During 2008 no officer or director of the Registrant received aggregate direct remuneration from the Registrant in excess of $60,000. The following tabulation sets forth certain information concerning all remuneration paid by the
Registrant to all officers and directors of the Registrant during the year ended December 31, 2008.



|                                                          |  |                        |  |                             |       
|--------------------------------------------------------- |  | ---------------------- |  | --------------------------- | ------
|Name of Individuals or Number of Persons In Group         |  | Capacitieswhich served |  | Salaries andDirectors Fees
|All directors and officers as a group (three (3) persons) |  | Directors and Officers |  | $                           | 37,200

REMUNERATION IN THE FUTURE. As of December 31, 2008 no officer or director of the
Registrant has any contract or other arrangement with the Registrant relating to any future remuneration, except that as long as such officers and directors continue to serve in such capacity, they will receive from the Registrant the customary fees
and salaries at a rate to be agreed upon by the Registrant and such persons.

Directors Remuneration. All directors of the
Registrant receive $300 per month.

Options, Warrants, or Rights. The Registrant does not maintain any plan pursuant to which
persons are entitled to acquire any equity securities of the Registrant.

Termination of Employment. Except as otherwise described
in Item 11 of this annual report on Form 10-K, there are no plans or arrangements relating to payments to be made to any officer, or director of the Registrant, which resulted or will result from any persons resignation, retirement, or
termination or employment with the Registrant.



8



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##### Table of Contents

|14. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|--- | --------------------------------------------------------------

(a) Security Ownership of Certain Beneficial Owners.

As of the date of this annual report on Form
10-K, the only person who owns of record and directly more than 5% of the Registrants outstanding voting securities is Twenty Services Holding, Inc., a Delaware corporation, whose principal business address is 20 Cropwell Drive, Suite 100,
Pell City, Alabama. As of such date, Twenty Services Holding, Inc. and an affiliate of Holding own 725,267 shares of Common Stock of the Registrant and approximately 57% of the combined outstanding shares of Common Stock and Series A Preferred Stock
of the Registrant. Except as otherwise required by Alabama law and except for certain rights accorded by the Registrants Certificate of Incorporation in the event that dividends respecting the Series A-Preferred stock are not paid, the holders
of the Series A-Preferred Stock are not entitled to vote respecting matters coming before any meeting of the stockholders of the Registrant.

By virtue of his ownership of Common Stock of Twenty Services Holding, Inc., Mr. David J. Noble, the Chairman of the Board or Directors of the Registrant, indirectly and beneficially, owns approximately 52% of the outstanding
Common Stock of the Registrant.

(b) Security Ownership of Management. The following tabulation sets forth certain information
regarding the shares of equity securities of the Registrant.



|               |  |                                                             |  |                                                 |     |  |                |  
|-------------- |  | ----------------------------------------------------------- |  | ----------------------------------------------- | --- |  | -------------- | -
|Title of Class |  | Name of Beneficial Owner                                    |  | Approximate Amountand Nature ofBeneficial Owner |     |  | PercentofClass |  
|Common Stock   |  | David J. Noble                                              |  | 668,183 Indirect                                | (1) |  | 52.29          | %
|Common Stock   |  | A.J. Strickland, III                                        |  | 49,638 Indirect                                 | (1) |  | 3.88           | %
|Common Stock   |  | All directors and executive officers as a group (3) persons |  | 717,821 Indirect                                | (1) |  | 56.18          | %



|(l) | Reflects each persons interest in the shares of common stock of the Registrant owned by Twenty Services Holding, Inc. based upon such persons ownership of the
outstanding shares of common stock of Twenty Services Holding, Inc. as of February 27, 2009, excluding 6,000 shares of common stock of Twenty Services Holding, Inc. held by the Registrant. Twenty Services Holding, Inc. owns 725,267 shares or
approximately 57% of the outstanding shares of common stock.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

As of February 27, 2009, all officers and directors of the
Registrant as a group beneficially owned, based upon their ownership of the outstanding common stock of Twenty Services Holding, Inc. (Holding), and excluding adjustment for the shares of common stock of Holding, held by the Registrant,
717,821 shares of common stock of the Registrant, or approximately 56% of the outstanding common stock of the Registrant as of such date.

(c) Changes in Control. There are no arrangements known to the Registrant which subsequently could result in a change of control of the Registrant.



|15. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
|--- | -----------------------------------------------

There were no transactions during 2008 nor are there any currently proposed transactions between any pension, retirement, savings or similar plan of the Registrant and its affiliates, on the other hand, and the Registrant and its
affiliates, any officer, director or principal stockholder of the Registrant, or any person who has been nominated as a director of the Registrant, on the other hand.



9



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##### Table of Contents

PART IV



|16. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
|--- | ----------------------------------------------------------------

(a) (l) - (a) (2) - Financial Statements and Financial Statement Schedules. The financial statements and the financial statement schedules required to be filed as part of this report are listed in the
accompanying Index to Financial Statements and Financial Statement Schedules, and are set forth at the pages shown in such Index.

(a) (d)
- Exhibits. The Certificate of Incorporation of the Registrant, as amended, the By Laws of the Registrant, as amended, and Resolutions of the Board of Directors of the Registrant creating the 7% Cumulative Series A-1980 Preference Stock, the
7% Cumulative Series A-1981 Preference Stock, the 7% Cumulative Series A-1982 Preference Stock, the 7% Cumulative Series A-1985 Preference Stock, which were filed as exhibits to the Registrants Annual Report on Form 10-K for the years ended
December 31, 1980, December 31, 1981, December 31, 1982 and 1985, and the Registrants report on Form 8-K dated as of April 10 1984, are incorporated by reference.

(b) Reports on Form 8-K. No report on Form 8-K was filed during the year.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, there unto duly authorized.



TWENTY SERVICES, INC.By:

/s/    Jack C. BridgesJack C. BridgesExecutive Vice-President


Dated: April 15, 2009



|                                                           |  |                                                                         |  |     
|---------------------------------------------------------- |  | ----------------------------------------------------------------------- |  | ----
|SIGNATURE                                                  |  | CAPACITY                                                                |  | DATE
|/s/    David J. Noble David J. Noble                       |  | Chairman and Director and Principal Executive Officer of The Registrant |  |     
|                                                           |  |                                                                        
|/s/    Dr. A. J. Strickland, III Dr. A. J. Strickland, III |  | Vice-Chairman and Director of Twenty Services, Inc. (The Registrant)    |  |     



10



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##### Table of Contents

REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

We, as members of the Management of Twenty Services, Inc. (The Company), are responsible for establishing and maintaining effective internal
control over financial reporting. Twentys internal control system was designed to provide reasonable assurance to the Companys management and Board of Directors regarding the preparation and fair presentation of the Companys
financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over financial reporting includes self-monitoring mechanisms, and actions are taken to correct deficiencies as they are
identified.

All internal control systems, no matter how well designed, have inherent limitations and may not prevent or detect
misstatements in the Companys financial statements, including the possibility of circumvention or overriding of controls. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Twenty Services, Inc. assessed the effectiveness of the Companys internal control over
financial reporting as of December 31, 2008. In making this assessment, we used the criteria set forth by the Commission of Sponsoring Organizations of the Treadway Commission (COSO) in its Internal Control Over Financial
ReportingGuidance For Small Public Companies.

Based upon our assessment, we believe and assert that, as of December 31,
2008, the Companys internal control over financial reporting is effective based on these criteria.



|                     |  |    |  |                                                                 
|-------------------- |  | -- |  | ----------------------------------------------------------------
|Date: April 15, 2009 |  | By |  | /S/    DAVID J.
NOBLE                                           
|                     |  |    |  | David J. Noble Chairman/Director And Principal Executive Officer
|                     |  |   
|                     |  | By |  | /S/    JACK C.
BRIDGES                                          
|                     |  |    |  | Jack C. Bridges Executive Vice-President                        



11



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##### Table of Contents

TWENTY SERVICES, INC.

Financial Statements

and

Financial Statement Schedule

For the Years Ended

December 31, 2008, 2007 and 2006



---

##### Table of Contents

TWENTY SERVICES, INC.

Index to Financial Statements and Financial Statement Schedule

December 31, 2008, 2007 and 2006





|                                                               |  |           
|-------------------------------------------------------------- |  | ----------
|Index to Financial Statements and Financial Statement Schedule |  | F-1       
|                                                               | 
|Independent Auditors Report                                   |  | F-2       
|                                                               | 
|Balance Sheets                                                 |  | F-3       
|                                                               | 
|Statements of Operations                                       |  | F-4       
|                                                               | 
|Statements of Changes in Stockholders Equity                  |  | F-5       
|                                                               | 
|Statements of Cash Flows                                       |  | F-6       
|                                                               | 
|Notes to Financial Statements                                  |  | F-7 - F-13
|                                                               | 
|Financial Statement Schedule                                   |  |           
|                                                               | 
|Schedule I - Marketable Securities  2008                      |  | F-14      
|                                                               | 
|Schedule I - Marketable Securities  2007                      |  | F-15      



F-1



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##### Table of Contents

LOGO

Independent Auditors Report

The Shareholders and the Board of Directors

Twenty Services, Inc.

We have audited the accompanying balance sheets of Twenty Services, Inc. (the Company) as of December 31, 2008 and 2007, and the related statements
of operations, comprehensive income, cash flows and changes in stockholders equity for each of the three years in the period ended December 31, 2008. These financial statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Twenty Services, Inc. at December 31, 2008, 2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 31,
2008, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the financial statements,
effective January 1, 2008, Twenty Services, Inc. adopted Financial Accounting Standards Board Interpretation Number 157, Fair Value Measurements.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of marketable securities for the years ended December 31, 2008 and 2007 are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.

/s/    Borland Benefield, P.C.



Borland Benefield, P.C.

Birmingham, Alabama

March 26, 2009



F-2



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##### Table of Contents

TWENTY SERVICES, INC.

Balance Sheets





|                                                                                                                   |  |              |           |   |      |   |           |  
|------------------------------------------------------------------------------------------------------------------ |  | ------------ | --------- | - | ---- | - | --------- | -
|                                                                                                                   |  | December 31, |          
|                                                                                                                   |  | 2008         |           |   | 2007 |  
|Assets                                                                                                             |  |              |           |   |      |   |           |  
|Cash and cash equivalents                                                                                          |  | $            | 53,461    |   |      | $ | 66,369    |  
|Marketable securities                                                                                              |  |              | 3,101,128 |   |      |   | 3,735,395 |  
|Notes receivable, net of allowance                                                                                 |  |              | 26,822    |   |      |   | 30,034    |  
|Deferred tax asset                                                                                                 |  |              | 61,410    |   |      |   |          |  
|Other assets                                                                                                       |  |              | 22,280    |   |      |   | 21,748    |  
|                                                                                                                   |  |              |           |   |      |   |           |  
|                                                                                                                   |  |             
|Total Assets                                                                                                       |  | $            | 3,265,101 |   |      | $ | 3,853,546 |  
|                                                                                                                   |  |              |           |   |      |   |           |  
|                                                                                                                   |  |             
|Liabilities and Stockholders Equity                                                                               |  |              |           |   |      |   |           |  
|Liabilities                                                                                                        |  |              |           |   |      |   |           |  
|Accounts payable and accrued liabilities                                                                           |  | $            | 95,954    |   |      | $ | 121,848   |  
|Deferred tax liability                                                                                             |  |              |          |   |      |   | 91,352    |  
|                                                                                                                   |  |              |           |   |      |   |           |  
|Total liabilities                                                                                                  |  |              | 95,954    |   |      |   | 213,200   |  
|                                                                                                                   |  |              |           |   |      |   |           |  
|                                                                                                                   |  |             
|Stockholders Equity                                                                                               |  |              |           |   |      |   |           |  
|Preferred stock, $.10 par value, 7% cumulative, 2,500,000 shares authorized, 505,110 shares issued and outstanding |  |              | 50,511    |   |      |   | 50,511    |  
|Common stock, $.10 par value, 25,000,000 shares authorized, 1,283,068 issued and outstanding                       |  |              | 128,307   |   |      |   | 128,307   |  
|Additional paid-in capital                                                                                         |  |              | 1,716,074 |   |      |   | 1,716,074 |  
|Retained earnings                                                                                                  |  |              | 1,219,440 |   |      |   | 1,305,471 |  
|Accumulated other comprehensive income                                                                             |  |              | 407,303   |   |      |   | 783,910   |  
|Less: Investment in Twenty Services Holding, Inc.                                                                  |  |              | (60,000   | ) |      |   | (60,000   | )
|Preferred treasury stock, at $.25 per share; 63,136 and 61,432 shares at                                           |  |              |           |   |      |   |           |  
|December 31, 2008 and 2007, respectively                                                                           |  |              | (15,784   | ) |      |   | (15,358   | )
|Common treasury stock, at $2.50 per share; 110,682 and 107,428 shares December 31, 2008 and 2007, respectively     |  |              | (276,704  | ) |      |   | (268,569  | )
|                                                                                                                   |  |              |           |   |      |   |           |  
|Net stockholders equity                                                                                           |  |              | 3,169,147 |   |      |   | 3,640,346 |  
|                                                                                                                   |  |              |           |   |      |   |           |  
|                                                                                                                   |  |             
|Total Liabilities and Stockholders Equity                                                                         |  | $            | 3,265,101 |   |      | $ | 3,853,546 |  
|                                                                                                                   |  |              |           |   |      |   |           |  

See accompanying notes to financial statements.



F-3



---

##### Table of Contents

TWENTY SERVICES, INC.

Statements of Operations





|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|-------------------------------------------- |  | -------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                             |  | For the Years Ended December 31, |        
|                                             |  | 2008                             |         |   | 2007 |   |         | 2006 | 
|Revenue                                      |  |                                  |         |   |      |   |         |      |  |   |         |  
|Interest                                     |  | $                                | 78,187  |   |      | $ | 90,811  |      |  | $ | 99,333  |  
|Dividends                                    |  |                                  | 58,928  |   |      |   | 47,448  |      |  |   | 43,682  |  
|Other                                        |  |                                  | 8,434   |   |      |   | 26      |      |  |   | 3,313   |  
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|Total revenue                                |  |                                  | 145,549 |   |      |   | 138,285 |      |  |   | 146,328 |  
|                                             |  |                                  |        
|Operating Expenses                           |  |                                  |         |   |      |   |         |      |  |   |         |  
|General and administrative                   |  |                                  | 148,349 |   |      |   | 143,691 |      |  |   | 148,081 |  
|Total operating expenses                     |  |                                  | 148,349 |   |      |   | 143,691 |      |  |   | 148,081 |  
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|                                             |  |                                  |        
|Other Income (Loss)                          |  |                                  |         |   |      |   |         |      |  |   |         |  
|Gain (loss) on sale of marketable securities |  |                                  | (42,405 | ) |      |   | 3,416   |      |  |   | (2,525  | )
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|Total other income (loss)                    |  |                                  | (42,405 | ) |      |   | 3,416   |      |  |   | (2,525  | )
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|Loss Before Income Taxes                     |  |                                  | (45,205 | ) |      |   | (1,990  | )    |  |   | (4,278  | )
|                                             |  |                                  |        
|Income Tax Benefits (Expense)                |  |                                  | (13,390 | ) |      |   | 11,425  |      |  |   | 4,032   |  
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|                                             |  |                                  |        
|Net Income (Loss)                            |  | $                                | (58,595 | ) |      | $ | 9,435   |      |  | $ | (246    | )
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  
|                                             |  |                                  |        
|Income (Loss) Per Common Share               |  | $                                | (0.07   | ) |      | $ | 0.01    |      |  | $ | (0.02   | )
|                                             |  |                                  |         |   |      |   |         |      |  |   |         |  

See accompanying notes to financial statements.



F-4



---

##### Table of Contents

TWENTY SERVICES, INC.

Statements of Changes in Stockholders Equity

For the Years Ended December 31, 2008, 2007 and 2006





|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|------------------------------------------------------------------------------------------------------------------- |  | ------------------- | ------ | ---------------- | - | ------------------------ |  | ---------------- | --------- |  | ----------------------------------- | --------- | - | --------------------------------------- | - | --------- | ---------------------- |  | - | ------------------- | - |  | ----- | ------- | - |  | - | -------- | - |  | - | --------- | -
|                                                                                                                    |  | PreferredStock $.10 |        | CommonStock $.10 |   | AdditionalPaid-InCapital |  | RetainedEarnings |           |  | AccumulatedOtherComprehensiveIncome |           |   | Investmentin TwentyServicesHolding,Inc. |   |           | PreferredTreasuryStock |  |   | CommonTreasuryStock |   |  | Total |        
|Balance - December 31, 2005                                                                                         |  | $                   | 50,511 |                  | $ | 128,307                  |  | $                | 1,716,074 |  | $                                   | 1,351,705 |   |                                         | $ | 1,655,038 |                        |  | $ | (60,000             | ) |  | $     | (12,370 | ) |  | $ | (255,438 | ) |  | $ | 4,573,827 |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Comprehensive Income                                                                                                |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Net Loss                                                                                                            |  |                     |       |                  |   |                         |  |                  |          |  |                                     | (246      | ) |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (246      | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Change in Unrealized Cumulative Gains/Losses on Available-for-Sale Securities, Net of Deferred Income Tax of $6,321 |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   | (14,750   | )                      |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (14,750   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Total Comprehensive Income                                                                                          |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   | (14,996   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Purchase of Treasury Stock                                                                                          |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   |          |                        |  |   |                    |   |  |       | (2,428  | ) |  |   | (9,986   | ) |  |   | (12,414   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Dividends on Preferred Stock, ($.07 Per Share)                                                                      |  |                     |       |                  |   |                         |  |                  |          |  |                                     | (27,568   | ) |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (27,568   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Balance - December 31, 2006                                                                                         |  |                     | 50,511 |                  |   | 128,307                  |  |                  | 1,716,074 |  |                                     | 1,323,891 |   |                                         |   | 1,640,288 |                        |  |   | (60,000             | ) |  |       | (14,798 | ) |  |   | (265,424 | ) |  |   | 4,518,849 |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Comprehensive Income                                                                                                |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Net Income                                                                                                          |  |                     |       |                  |   |                         |  |                  |          |  |                                     | 9,435     |   |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | 9,435     |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Change in Unrealized Gains on Available-for-Sale Securities, Net of Deferred Income Tax of $362,271                 |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   | (856,378  | )                      |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (856,378  | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Total Comprehensive Income                                                                                          |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   | (846,943  | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Purchase of Treasury Stock                                                                                          |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   |          |                        |  |   |                    |   |  |       | (560    | ) |  |   | (3,145   | ) |  |   | (3,705    | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Dividends on Preferred Stock, ($.07 Per Share)                                                                      |  |                     |       |                  |   |                         |  |                  |          |  |                                     | (27,855   | ) |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (27,855   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Balance - December 31, 2007                                                                                         |  |                     | 50,511 |                  |   | 128,307                  |  |                  | 1,716,074 |  |                                     | 1,305,471 |   |                                         |   | 783,910   |                        |  |   | (60,000             | ) |  |       | (15,358 | ) |  |   | (268,569 | ) |  |   | 3,640,346 |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Comprehensive Income                                                                                                |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Net Loss                                                                                                            |  |                     |       |                  |   |                         |  |                  |          |  |                                     | (58,594   | ) |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (58,594   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Change in Unrealized Gains on Available-for-Sale Securities, Net of Deferred Income Tax of $166,152                 |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   | (376,607  | )                      |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (376,607  | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|Total Comprehensive Income                                                                                          |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (435,201  | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Purchase of Treasury Stock                                                                                          |  |                     |       |                  |   |                         |  |                  |          |  |                                     |          |   |                                         |   |          |                        |  |   |                    |   |  |       | (426    | ) |  |   | (8,135   | ) |  |   | (8,561    | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Dividends on Preferred Stock ($.07 Per Share)                                                                       |  |                     |       |                  |   |                         |  |                  |          |  |                                     | (27,437   | ) |                                         |   |          |                        |  |   |                    |   |  |       |        |   |  |   |         |   |  |   | (27,437   | )
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |          
|Balance - December 31, 2008                                                                                         |  | $                   | 50,511 |                  | $ | 128,307                  |  | $                | 1,716,074 |  | $                                   | 1,219,440 |   |                                         | $ | 407,303   |                        |  | $ | (60,000             | ) |  | $     | (15,784 | ) |  | $ | (276,704 | ) |  | $ | 3,169,147 |  
|                                                                                                                    |  |                     |        |                  |   |                          |  |                  |           |  |                                     |           |   |                                         |   |           |                        |  |   |                     |   |  |       |         |   |  |   |          |   |  |   |           |  

See accompanying notes to financial statements.



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##### Table of Contents

TWENTY SERVICES, INC.

Statements of Cash Flows





|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|------------------------------------------------------------------------------------------------------------ |  | -------------------------------- | -------- | - | ---- | - | -------- | ---- |  | - | ---------- | -
|                                                                                                             |  | For the Years Ended December 31, |         
|                                                                                                             |  | 2008                             |          |   | 2007 |   |          | 2006 | 
|Cash Flows From Operating Activities                                                                         |  |                                  |          |   |      |   |          |      |  |   |            |  
|Interest and dividends received                                                                              |  | $                                | 137,115  |   |      | $ | 138,276  |      |  | $ | 143,016    |  
|Other income                                                                                                 |  |                                  | 8,434    |   |      |   | 1,514    |      |  |   | 3,313      |  
|Cash paid to suppliers and employees                                                                         |  |                                  | (164,666 | ) |      |   | (129,282 | )    |  |   | (176,410   | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Net Cash Flows From Operating Activities                                                                     |  |                                  | (19,117  | ) |      |   | 10,508   |      |  |   | (30,081    | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Cash Flows From Investing Activities                                                                         |  |                                  |          |   |      |   |          |      |  |   |            |  
|Principal collected on loans                                                                                 |  |                                  | 2,258    |   |      |   | 4,542    |      |  |   | 6,790      |  
|Loans made to customers                                                                                      |  |                                  |         |   |      |   | (4,300   | )    |  |   | (20,000    | )
|Principal collected on held-to-maturity securities                                                           |  |                                  | 407      |   |      |   | 474      |      |  |   | 300        |  
|Proceeds from sale of available-for-sale securities                                                          |  |                                  | 354,617  |   |      |   | 125,330  |      |  |   | 1,723,056  |  
|Purchases of available-for-sale securities                                                                   |  |                                  | (317,000 | ) |      |   | (240,000 | )    |  |   | (1,498,900 | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Net Cash Flows From Investing Activities                                                                     |  |                                  | 40,282   |   |      |   | (113,954 | )    |  |   | 211,246    |  
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Cash Flows From Financing Activities                                                                         |  |                                  |          |   |      |   |          |      |  |   |            |  
|Preferred stock dividends paid                                                                               |  |                                  | (25,511  | ) |      |   | (36,902  | )    |  |   | (17,639    | )
|Purchase of treasury stock                                                                                   |  |                                  | (8,562   | ) |      |   | (3,705   | )    |  |   | (12,414    | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Net Cash Flows From Financing Activities                                                                     |  |                                  | (34,073  | ) |      |   | (40,607  | )    |  |   | (30,053    | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Net Increase (Decrease) in Cash and Cash Equivalents                                                         |  |                                  | (12,908  | ) |      |   | (144,053 | )    |  |   | 151,112    |  
|                                                                                                             |  |                                  |         
|Cash and Cash Equivalents - Beginning of Year                                                                |  |                                  | 66,369   |   |      |   | 210,422  |      |  |   | 59,310     |  
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Cash and Cash Equivalents - End of Year                                                                      |  | $                                | 53,461   |   |      | $ | 66,369   |      |  | $ | 210,422    |  
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|Reconciliation of Operating Income (Loss) to Net Cash From Operating Activities                              |  |                                  |          |   |      |   |          |      |  |   |            |  
|Operating income (loss)                                                                                      |  | $                                | (58,595  | ) |      | $ | 9,435    |      |  | $ | (246       | )
|Adjustments to reconcile net income to net operating activities (Gain) loss on sale of marketable securities |  |                                  | 42,405   |   |      |   | (3,416   | )    |  |   | 2,525      |  
|Net change in deferred income taxes                                                                          |  |                                  | 24,469   |   |      |   | (13,030  | )    |  |   | (4,032     | )
|Increase (decrease) in accounts payable and accrued liabilities                                              |  |                                  | (27,396  | ) |      |   | 17,519   |      |  |   | (28,328    | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  
|                                                                                                             |  |                                  |         
|Net Cash Flows From Operating Activities                                                                     |  | $                                | (19,117  | ) |      | $ | 10,508   |      |  | $ | (30,081    | )
|                                                                                                             |  |                                  |          |   |      |   |          |      |  |   |            |  

See accompanying notes to financial statements.



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements

For
the Years Ended December 31, 2008, 2007 and 2006



Note 1  Accounting Policies

Income Recognition  Interest income from finance receivables is recognized by Twenty
Services, Inc. (the Company) using the interest (accrual) method. Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 90 days or more and resumed when the loan becomes contractually current.

Estimates  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.

Credit Losses  Provisions for credit losses are charged to income in amounts
sufficient to maintain the allowance at a level considered adequate to cover the losses of principal and interest in the existing portfolio. The Companys charge-off policy is based on a loan-by-loan review for all receivables that are charged
off when they are deemed uncollectible.

Cash Equivalents  Holdings of highly liquid investments with original maturities of three months or
less and investments in money market funds are considered to be cash equivalents.

Marketable Securities  On January 1, 1995, the Company
adopted the provisions of Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities.

Management determines the appropriate classification of its investment in debt and equity securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Companys securities are classified in two
categories and accounted for as follows:



| |  |  | Securities Held-to-Maturity.Bonds, notes, certain preferred stocks and other debt securities for which the Company has the positive intent and ability to
hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts which are recognized in interest income using methods which approximate level yields over the period to maturity.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Securities Available-for-Sale.Bonds, notes and certain preferred stocks not classified as held-to-maturity and common stocks are reported at fair value.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are other than
temporary result in write-downs of the individual securities to their fair value. The write-downs are included in earnings as realized losses.

Unrealized
holding gains and losses, net of deferred income taxes, on securities available-for-sale are reported as a net amount in a separate component of stockholders equity until realized.

Realized gains and losses on the sale of securities available-for-sale are determined using the specific-identification method.

Income Taxes  Deferred income taxes are recognized for the effects of temporary differences between financial statement and tax reporting.

Earnings Per Common Share  Earnings per common share are determined by dividing net income (loss), after giving effect to preferred stock dividends, by the weighted average number of common shares outstanding during the year.
The weighted average number of common shares outstanding for each of the years ended December 31, 2008, 2007 and 2006 was 1,283,068.



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2008, 2007 and 2006



Note 1  Accounting Policies (continued)

Recent Accounting Pronouncement and Accounting Changes  In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157,
Fair Value Measurement (FAS 157), which provides guidance for using fair value to measure assets and liabilities, but does not expand the use of fair value in any circumstance. FAS 157 also requires expanded disclosures about
the extent to which a company measures assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on an entitys financial statements. This statement applies whenever other
standards require or permit assets and liabilities to be measured at fair value. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, with early
adoption permitted. Twenty Services, Inc. adopted FAS 157 on January 1, 2008, and the effect of adoption on the financial statements was not material.

In June 2006, the FASB issued FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxesan interpretation of FASB Statement 109 (FIN 48). FIN 48 creates a single model to address
uncertainty in tax positions and clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Under FIN 48, a tax position can
be recognized in the financial statements if it is more likely than not that the position will be sustained upon examination by taxing authorities who have full knowledge of all relevant information. A tax position that meets the
more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. FIN 48 also provides guidance on derecognition, classification, interest and
penalties, accounting in interim periods, disclosure and transition. The Companys policy is to record the interest and penalties on tax obligations on the income tax expense line on the statements of operations. Twenty Services, Inc. adopted
FIN 48 on January 1, 2008, and the effect of adoption on the financial statements was not material.

Note 2  Nature of Operations, Risks, and
Uncertainties

The Company is primarily engaged in the general finance business. The Company grants commercial and personal real estate loans and
general business and personal loans to customers located primarily in Alabama. The majority of the loan portfolio is secured by various types of collateral including mortgages and security interests in equipment and other property with a significant
concentration in loans collateralized by residential real estate.

Note 3  Fair Values of Financial Instruments

Twenty Services, Inc. adopted Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157), as of January 1,
2008. FAS 157 establishes a framework for using fair value to measure assets and liabilities and defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) as opposed to the price that
would be paid to acquire the asset or received to assume the liability (an entry price). Under FAS 157, a fair value measure should reflect the assumptions that market participants would use in pricing the asset or liability, including the
assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. FAS 157 requires disclosures that stratify balance sheet amounts measured at fair
value based on inputs the Company uses to derive fair value measurements as follows:



| |  |  | Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active markets (which include exchanges and
over-the-counter markets with sufficient volume),
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar
instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market,
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

and



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2008, 2007 and 2006



Note 3  Fair Values of Financial Instruments
(continued)



| |  |  | Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in the market, but observable based
on Company-specific data. These unobservable assumptions reflect the Companys own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques typically include option pricing models,
discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEMS MEASURED AT FAIR VALUE ON A RECURRING BASIS

The following
table presents financial assets measured at fair value on a reoccurring basis as of December 31, 2008:



|                              |  |            |           |                                                             |   |                                            |  |                                        |   |  |   |  
|----------------------------- |  | ---------- | --------- | ----------------------------------------------------------- | - | ------------------------------------------ |  | -------------------------------------- | - |  | - | -
|                              |  |            |           | Fair Value Measurements at Reporting Date Using            
|Description                   |  | 12/31/2008 |           | Quoted Prices inActive Marketsfor Identical Assets(Level 1) |   | Significant OtherObservableInputs(Level
2) |  | SignificantUnobservableInputs(Level 3)
|Available-for-sale securities |  | $          | 3,099,666 |                                                             | $ | 3,099,666                                  |  | $                                      |  |  | $ | 
|                              |  |            |           |                                                             |   |                                            |  |                                        |   |  |   |  

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following methods and assumptions were used by the Company in estimating the fair values of financial instruments that are not disclosed under FAS 157:



| |  |  | Short-term financial instruments are carried at their carrying amounts reported in the balance sheet that are reasonable estimates of fair values due to the
relatively short period to maturity of the instruments. This approach applies to cash and temporary investments, finance receivables, notes receivable from related parties and other receivables.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Marketable securities held to maturity are valued at quoted market values.
| | - |  | --------------------------------------------------------------------------



|                                       |  |               |        |           |   |               |  |           |        |  |   |       
|-------------------------------------- |  | ------------- | ------ | --------- | - | ------------- |  | --------- | ------ |  | - | ------
|                                       |  | 2008          |        | 2007     
|                                       |  | CarryingValue |        | FairValue |   | CarryingValue |  | FairValue
|Cash and Temporary Investments         |  | $             | 53,461 |           | $ | 53,461        |  | $         | 66,369 |  | $ | 66,369
|Marketable Securities Held to Maturity |  |               | 1,461  |           |   | 1,461         |  |           | 1,866  |  |   | 1,866 
|Finance Receivables, Net               |  |               | 26,822 |           |   | 26,822        |  |           | 30,034 |  |   | 30,034

[The remainder of this sheet intentionally left blank.]



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2008, 2007 and 2006





Note 4  Marketable Securities

The amortized cost and aggregate
fair values of investments in securities are as follows:



|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          
|------------------------------------------------------- |  | ------------- | --------- | -------------------- | - | --------------------- |  | ---------- | ------- |  | - | ---------
|                                                        |  | AmortizedCost |           | GrossUnrealizedGains |   | GrossUnrealizedLosses |  | Fair Value
|December 31, 2008                                       |  |               |           |                      |   |                       |  |            |         |  |   |          
|Available-for-sale securities                           |  |               |           |                      |   |                       |  |            |         |  |   |          
|Equity securities                                       |  | $             | 1,246,231 |                      | $ | 881,000               |  | $          | 245,648 |  | $ | 1,881,583
|Debt securities                                         |  |               | 1,271,574 |                      |   | 2,617                 |  |            | 56,108  |  |   | 1,218,083
|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          
|Total available-for-sale securities                     |  | $             | 2,517,805 |                      | $ | 883,617               |  | $          | 301,756 |  | $ | 3,099,666
|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          
|                                                        |  |               |           |                     
|Held-to-maturity securities                             |  |               |           |                      |   |                       |  |            |         |  |   |          
|Obligations of U.S. Government Corporation and Agencies |  | $             | 1,461     |                      | $ |                      |  | $          |        |  | $ | 1,461    
|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          
|                                                        |  |               |           |                     
|December 31, 2007                                       |  |               |           |                      |   |                       |  |            |         |  |   |          
|Available-for-sale securities                           |  |               |           |                      |   |                       |  |            |         |  |   |          
|Equity securities                                       |  | $             | 1,304,131 |                      | $ | 1,212,977             |  | $          | 81,678  |  | $ | 2,435,430
|Debt securities                                         |  |               | 1,293,696 |                      |   | 15,001                |  |            | 10,600  |  |   | 1,298,097
|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          
|Total available-for-sale securities                     |  | $             | 2,597,827 |                      | $ | 1,227,978             |  | $          | 92,278  |  | $ | 3,733,527
|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          
|                                                        |  |               |           |                     
|Held-to-maturity securities                             |  |               |           |                      |   |                       |  |            |         |  |   |          
|Obligations of U.S. Government Corporation and Agencies |  | $             | 1,868     |                      | $ |                      |  | $          |        |  | $ | 1,868    
|                                                        |  |               |           |                      |   |                       |  |            |         |  |   |          

[The remainder of this sheet intentionally left blank.]



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2008, 2007 and 2006



Note 4  Marketable Securities (continued)

The amortized cost and aggregate fair value of debt securities at December 31, 2008 and 2007, by contractual maturity, are as follows. Expected
maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call prepayment penalties.



|                                                 |  |                    |           |                  |   |               |  |             |       |  |   |      
|------------------------------------------------ |  | ------------------ | --------- | ---------------- | - | ------------- |  | ----------- | ----- |  | - | -----
|                                                 |  | Available-for-Sale |           | Held-to-Maturity
|                                                 |  | AmortizedCost      |           | MarketValue      |   | AmortizedCost |  | MarketValue
|December 31, 2008                                |  |                    |           |                  |   |               |  |             |       |  |   |      
|Corporate Due In                                 |  |                    |           |                  |   |               |  |             |       |  |   |      
|After 10 Years                                   |  | $                  | 255,074   |                  | $ | 198,966       |  | $           |      |  | $ |     
|U.S. Government Corporations and Agencies Due In |  |                    |           |                  |   |               |  |             |       |  |   |      
|6-10 Years                                       |  |                    |          |                  |   |              |  |             | 1,461 |  |   | 1,461
|After 10 Years                                   |  |                    | 1,016,500 |                  |   | 1,019,117     |  |             |      |  |   |     
|                                                 |  |                    |           |                  |   |               |  |             |       |  |   |      
|Total                                            |  | $                  | 1,271,574 |                  | $ | 1,218,083     |  | $           | 1,461 |  | $ | 1,461
|                                                 |  |                    |           |                  |   |               |  |             |       |  |   |      
|                                                 |  |                    |           |                 
|December 31, 2007                                |  |                    |           |                  |   |               |  |             |       |  |   |      
|Corporate Due In                                 |  |                    |           |                  |   |               |  |             |       |  |   |      
|After 10 Years                                   |  | $                  | 254,196   |                  | $ | 258,000       |  | $           |      |  | $ |     
|U.S. Government Corporations and Agencies Due In |  |                    |           |                  |   |               |  |             |       |  |   |      
|6-10 Years                                       |  |                    |          |                  |   |              |  |             | 1,868 |  |   | 1,868
|After 10 Years                                   |  |                    | 1,039,500 |                  |   | 1,040,097     |  |             |      |  |   |     
|                                                 |  |                    |           |                  |   |               |  |             |       |  |   |      
|Total                                            |  | $                  | 1,293,696 |                  | $ | 1,298,097     |  | $           | 1,868 |  | $ | 1,868
|                                                 |  |                    |           |                  |   |               |  |             |       |  |   |      

Proceeds from the sale of available-for-sale securities were $354,617 for the year ended December 31, 2008. A
net loss of $42,405 was realized. There were no sales of held-to-maturity securities for the year ended December 31, 2008.

Proceeds from the sale of
available-for-sale securities were $125,330 for the year ended December 31, 2007. A net gain of $3,416 was realized. There were no sales of held-to-maturity securities for the year ended December 31, 2007.

Note 5  Finance Receivables and Allowance for Credit Losses

Finance receivables consisted of the following at December 31:



|                         |  |      |        |      |   |       
|------------------------ |  | ---- | ------ | ---- | - | ------
|                         |  | 2008 |        | 2007
|Finance Receivables, Net |  | $    | 26,822 |      | $ | 30,034
|                         |  |      |        |      |   |       

All contractual maturities of finance receivables are due in the year ending December 31, 2009.



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2008, 2007 and 2006



Note 6  Income Taxes

Temporary differences giving rise to the deferred tax liability (benefit) consist primarily of gains and losses on investments recognized for financial reporting purposes
that are not recognized for tax purposes and of unused operating and capital loss carryforwards that may be applied against future taxable income.

The
provision for income taxes was as follows for the years ended December 31:



|                                |  |      |         |   |      |   |        |  |   |      
|------------------------------- |  | ---- | ------- | - | ---- | - | ------ |  | - | -----
|                                |  | 2008 |         |   | 2007 |   | 2006  
|Current                         |  |      |         |   |      |   |        |  |   |      
|Deferred Tax Benefits (Expense) |  | $    | (13,390 | ) |      | $ | 11,425 |  | $ | 4,032
|                                |  |      |         |   |      |   |        |  |   |      

Deferred tax assets and liabilities at December 31 consisted of the following:



|                                                     |  |      |          |   |      |   |          |  
|---------------------------------------------------- |  | ---- | -------- | - | ---- | - | -------- | -
|                                                     |  | 2008 |          |   | 2007 |  
|Deferred Tax Assets                                  |  |      |          |   |      |   |          |  
|Net operating and capital loss carryforwards         |  | $    | 235,968  |   |      | $ | 249,058  |  
|Other                                                |  |      |         |   |      |   | 300      |  
|                                                     |  |      |          |   |      |   |          |  
|                                                     |  |      | 235,968  |   |      |   | 249,358  |  
|                                                     |  |     
|Deferred Tax Liability                               |  |      |          |   |      |   |          |  
|Net unrealized gain on available-for-sale securities |  |      | (174,558 | ) |      |   | (340,710 | )
|                                                     |  |      |          |   |      |   |          |  
|                                                     |  |     
|Net Deferred Tax Asset (Liability)                   |  | $    | 61,410   |   |      | $ | (91,352  | )
|                                                     |  |      |          |   |      |   |          |  

The Company has available at December 31, 2008, approximately $760,000 of unused operating and capital loss
carryforwards that may be applied against future taxable income and that expire in various years from 2009 to 2025.

Note 7  Stockholders
Equity

The preferred stock has a cumulative dividend of $.07 per share and is redeemable at the Companys option of $1.05 per share. In the event
of liquidation, the preferred stockholders receive $1.05 per share before any distributions are made to common stockholders. The 2005 dividend (approximately $28,000) was declared February 2006 and paid in March 2006. The 2006 dividend
(approximately $28,000) was declared February 2007 and paid in March 2007. The 2007 dividend (approximately $28,000) was declared February 2008 and paid in March 2008.

Note 8  Investment in Twenty Services Holding, Inc.

The Company owns 6,000 shares of common stock of Twenty
Services Holding, Inc. (the Holding Company), a holding company that owns approximately 54% of the Companys outstanding common stock. The amount paid for the Holding Companys common stock of $60,000 has been deducted from
stockholders equity in the accompanying balance sheet.



F-12



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##### Table of Contents

TWENTY SERVICES, INC.

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2008, 2007 and 2006



Note 9  Concentration of Credit Risk

The Company maintains an investment account with a brokerage firm. Balances are insured up to $500,000 (with a limit of $100,000 for cash) by the Securities Investor
Protection Corporation with excess protection coverage provided by the Customer Asset Protection Company. At December 31, 2008, the Company had $2,601,128 in cash and securities that were above insured amounts.

Note 10  Related Party Transactions

At December 31, 2008
and 2007, the Company had notes receivable from an officer totaling $26,822 and $30,034, respectively.

Note 11  Treasury Stock

The Company purchased 3,254 shares of common stock for an aggregate purchase price of $8,135, or $2.50 per share, and 1,704 shares of its preferred stock for an aggregate
purchase price of $426, or $0.25 per share, during the year ended December 31, 2008. The shares are held as common treasury stock and preferred treasury stock.

The Company purchased 1,258 shares of common stock for an aggregate purchase price of $3,145, or $2.50 per share, and 2,240 shares of its preferred stock for an aggregate purchase price of $560 or $0.25 per share,
during the year ended December 31, 2007. The shares are held as common treasury stock and preferred treasury stock.

The Company purchased 3,994
shares of common stock for an aggregate purchase price of $9,986, or $2.50 per share, and 9,712 shares of its preferred stock for an aggregate purchase price of $2,428 or $0.25 per share, during the year ended December 31, 2006. The shares are
held as common treasury stock and preferred treasury stock.



F-13



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##### Table of Contents

TWENTY SERVICES, INC.

Schedule I - Marketable Securities

For the Year Ended December 31, 2008



|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|----------------------------------------------------------- |  | --------------------------------------------------------- | ------- | ----------------- | - | ------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------- | --------- |  | - | ---------
|Name of issuer and title of each issue                      |  | Number ofshares orunits -principalamount ofbonds andnotes |         | Cost of eachissue |   | Marketvalueof eachissueat balancesheet date |  | Amount at whicheach portfolioof equitysecurity issuesand each othersecurity issue iscarried in thebalance sheet
|Equity Securities Available-for-Sale:                       |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|American Equity Investment Life Holding Company (AEL)       |  | $                                                         | 237,000 |                   | $ | 790,000                                     |  | $                                                                                                               | 1,659,000 |  | $ | 1,659,000
|AMF Bowling Worldwide, Ser A Warrants - exp 3/9/09          |  |                                                           | 524     |                   |   | 3,668                                       |  |                                                                                                                 |          |  |   |         
|AMF Bowling Worldwide, Ser B Warrants - exp 3/9/09          |  |                                                           | 512     |                   |   | 2,560                                       |  |                                                                                                                 |          |  |   |         
|Royal Bank of Scotland 6.125% Ser R Callable 12/30/11       |  |                                                           | 4,000   |                   |   | 100,000                                     |  |                                                                                                                 | 31,880    |  |   | 31,880   
|Gramercy Capital 8.125% Cum. Per. Pref. Callable 4/18/12    |  |                                                           | 1,000   |                   |   | 25,000                                      |  |                                                                                                                 | 4,200     |  |   | 4,200    
|Evergreen Global Dividend Opportunity Fund                  |  |                                                           | 2,000   |                   |   | 40,000                                      |  |                                                                                                                 | 19,080    |  |   | 19,080   
|Blackrock Preferred & Equity Advantage Trust                |  |                                                           | 2,000   |                   |   | 50,000                                      |  |                                                                                                                 | 16,700    |  |   | 16,700   
|Public Storage $2.45 Dep. Shs. Repstg 1/1000 A Sh. Of Eq.   |  |                                                           | 3,000   |                   |   | 60,000                                      |  |                                                                                                                 | 72,000    |  |   | 72,000   
|Barclay Bank PLC 7.75% Non-Cum. Per. Pref. Callable 3/15/13 |  |                                                           | 1,000   |                   |   | 25,000                                      |  |                                                                                                                 | 14,850    |  |   | 14,850   
|Citigroup 8.5% Ser. F Pref. Non. Cum. 6/15/13               |  |                                                           | 2,000   |                   |   | 50,000                                      |  |                                                                                                                 | 31,660    |  |   | 31,660   
|Lehman Bros Hldg. 7.95%                                     |  |                                                           | 1       |                   |   | 3                                           |  |                                                                                                                 | 3         |  |   | 3        
|NorthStar Realty 8.25% Cum. Per. Pref. Ser. Callable 2/7/12 |  |                                                           | 2,000   |                   |   | 50,000                                      |  |                                                                                                                 | 16,760    |  |   | 16,760   
|Alpine Total Dynamic Dividend Fund SBI                      |  |                                                           | 2,500   |                   |   | 50,000                                      |  |                                                                                                                 | 15,450    |  |   | 15,450   
|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|Total Equity Securities Available-for-Sale                  |  |                                                           |         |                   |   | 1,246,231                                   |  |                                                                                                                 | 1,881,583 |  |   | 1,881,583
|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|Debt Securities Available-for-Sale:                         |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|Fedl. Natl. Mtg. Assn. Notes Callable Cpn. 6.375%           |  |                                                           | 400,000 |                   |   | 399,500                                     |  |                                                                                                                 | 400,504   |  |   | 400,504  
|Aetna, Inc. Notes Cpn. 7.625%                               |  |                                                           | 150,000 |                   |   | 156,147                                     |  |                                                                                                                 | 141,480   |  |   | 141,480  
|Fedl. Natl. Mtg. Assn. Notes Callable Cpn. 5.75%            |  |                                                           | 400,000 |                   |   | 400,000                                     |  |                                                                                                                 | 400,664   |  |   | 400,664  
|Land O Lakes Cap Trst I 144 B/E Cpn 7.45% Due 3/15/28       |  |                                                           | 100,000 |                   |   | 98,927                                      |  |                                                                                                                 | 57,486    |  |   | 57,486   
|Fannie Mae Notes Callable Cpn. 6.3%                         |  |                                                           | 217,000 |                   |   | 217,000                                     |  |                                                                                                                 | 217,949   |  |   | 217,949  
|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|Total Debt Securities Available-for-Sale                    |  |                                                           |         |                   |   | 1,271,574                                   |  |                                                                                                                 | 1,218,083 |  |   | 1,218,083
|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|Debt Securities Held-to-Maturity                           |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|GNMA Mortgage Backed Certificates, Due 2012                 |  |                                                           |         |                   |   |                                            |  |                                                                                                                 |          |  |   | 1,461    
|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          
|Total                                                       |  |                                                           |         |                   | $ | 2,517,805                                   |  | $                                                                                                               | 3,099,666 |  | $ | 3,101,127
|                                                            |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |           |  |   |          



F-14



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##### Table of Contents

TWENTY SERVICES, INC.

Schedule I - Marketable Securities

For the Year Ended December 31, 2007





|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|----------------------------------------------------------- |  | --------------------------------------------------------- | ------- | ----------------- | - | -------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------- | --------- |  | - | ---------
|Name of issuer and title of each issue                      |  | Number ofshares orunits -principalamount ofbondsand notes |         | Cost ofeach issue |   | Marketvalueof each issueat balancesheet
date |  | Amount at whicheach portfolioof equitysecurity issuesand each othersecurity issue
iscarried in thebalance sheet
|Equity Securities Available-for-Sale:                       |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|American Equity Investment Life Holding Company (AEL)       |  | $                                                         | 237,000 |                   | $ | 790,000                                      |  | $                                                                                                               | 1,964,730 |  | $ | 1,964,730
|AMF Bowling Worldwide, Ser A Warrants - exp 3/9/09          |  |                                                           | 524     |                   |   | 3,668                                        |  |                                                                                                                 |          |  |   |         
|AMF Bowling Worldwide, Ser B Warrants - exp 3/9/09          |  |                                                           | 512     |                   |   | 2,560                                        |  |                                                                                                                 |          |  |   |         
|Royal Bank of Scotland 6.125% Ser R Callable 12/30/11       |  |                                                           | 4,000   |                   |   | 100,000                                      |  |                                                                                                                 | 76,400    |  |   | 76,400   
|Gramercy Capital 8.125% Cum. Per. Pref. Callable 4/18/12    |  |                                                           | 1,000   |                   |   | 25,000                                       |  |                                                                                                                 | 19,740    |  |   | 19,740   
|Evergreen Global Dividend Opportunity Fund                  |  |                                                           | 2,000   |                   |   | 40,000                                       |  |                                                                                                                 | 34,920    |  |   | 34,920   
|J.P. Morgan Chase Co.                                       |  |                                                           | 3,000   |                   |   | 107,903                                      |  |                                                                                                                 | 130,950   |  |   | 130,950  
|Blackrock Preferred & Equity Advantage Trust                |  |                                                           | 2,000   |                   |   | 50,000                                       |  |                                                                                                                 | 34,220    |  |   | 34,220   
|Public Storage $2.45 Dep. Shs. Repstg 1/1000 A Sh. Of Eq.   |  |                                                           | 3,000   |                   |   | 60,000                                       |  |                                                                                                                 | 75,000    |  |   | 75,000   
|Barclay Bank PLC 7.75% Non-Cum. Per. Pref. Callable 3/15/13 |  |                                                           | 1,000   |                   |   | 25,000                                       |  |                                                                                                                 | 25,200    |  |   | 25,200   
|NorthStar Realty 8.25% Cum. Per. Pref. Ser. Callable 2/7/12 |  |                                                           | 2,000   |                   |   | 50,000                                       |  |                                                                                                                 | 31,820    |  |   | 31,820   
|Alpine Total Dynamic Dividend Fund SBI                      |  |                                                           | 2,500   |                   |   | 50,000                                       |  |                                                                                                                 | 42,450    |  |   | 42,450   
|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|Total Equity Securities Available-for-Sale                  |  |                                                           |         |                   |   | 1,304,131                                    |  |                                                                                                                 | 2,435,430 |  |   | 2,435,430
|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|Debt Securities Available-for-Sale:                         |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|Fedl. Natl. Mtg. Assn. Notes Callable Cpn. 6.375%           |  |                                                           | 400,000 |                   |   | 399,500                                      |  |                                                                                                                 | 400,068   |  |   | 400,068  
|Aetna, Inc. Notes Cpn. 7.625%                               |  |                                                           | 150,000 |                   |   | 155,269                                      |  |                                                                                                                 | 169,637   |  |   | 169,637  
|Fedl. Natl. Mtg. Assn. Notes Callable Cpn. 5.75%            |  |                                                           | 400,000 |                   |   | 400,000                                      |  |                                                                                                                 | 399,964   |  |   | 399,964  
|Federal Home Loan Bank Bonds Callable Cpn. 5.540%           |  |                                                           | 90,000  |                   |   | 90,000                                       |  |                                                                                                                 | 90,009    |  |   | 90,009   
|Federal Home Loan Mtg. Corp. Med. Term Callable Cpn. 6%     |  |                                                           | 50,000  |                   |   | 50,000                                       |  |                                                                                                                 | 50,005    |  |   | 50,005   
|Land O Lakes Cap Trst I 144 B/E Cpn 7.45% Due 3/15/28       |  |                                                           | 100,000 |                   |   | 98,927                                       |  |                                                                                                                 | 88,364    |  |   | 88,364   
|Fedl. Natl. Mtg. Assn. Callable 6.125%                      |  |                                                           | 100,000 |                   |   | 100,000                                      |  |                                                                                                                 | 100,050   |  |   | 100,050  
|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|Total Debt Securities Available-for-Sale                    |  |                                                           |         |                   |   | 1,293,696                                    |  |                                                                                                                 | 1,298,097 |  |   | 1,298,097
|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|Debt Securities Held-to-Maturity                           |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|GNMA Mortgage Backed Certificates, Due 2012                 |  |                                                           |         |                   |   |                                             |  |                                                                                                                 |          |  |   | 1,868    
|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          
|Total                                                       |  |                                                           |         |                   | $ | 2,597,827                                    |  | $                                                                                                               | 3,733,527 |  | $ | 3,735,395
|                                                            |  |                                                           |         |                   |   |                                              |  |                                                                                                                 |           |  |   |          



F-15